Amazon USA Charging VAT for Non VAT Registed UK Companies

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Seller_GA5xf9radEAG7

Amazon USA Charging VAT for Non VAT Registed UK Companies

Amazon.com USA is charging me VAT on FBA services invoices. On challenging they say I have to be VAT registered for them to remove them. We are a limited trading company operating just below the VAT threshold.

Checking HMRC rules, VAT is not charged by foreign entities to UK businesses on what is called a Reverse Charge basis. HMRC states the rules apply even if the UK company is not VAT registered. The only requirement is that it is a trading business.

I have challenged them via USA support, but get the answer that effectively it's a UK issue and we no nothing

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Seller_76AUwmqvSyRIM

Check your invoice. Which Amazon division is invoicing you? The UK branch? If do, they should charge VAT.

I recall reading something about being invoiced by your local country, whichever country the fees apply to although I thought this was only for UK/EU.

BTW, it makes no difference whether you are VAT registered or not.

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